Replies to post #1334 on NII Holdings Inc fka NIHDQ

[EmDee]

if you are playing a game... wanna win or lose? it is the same here .. i f you are racing motorcycles... wanna be first or the last? it is the same here.. go and tell the creditors.. they should give you their money..

[Renee]

Secured Creditors hold all the power in U.S. Chapter 11 Reorganization Bankruptcies, and they are entitled to as much security as possible for their reorganized loans.

Existing equity would be burdensome to the PLAN whereby Secured Creditors want as much security and guarantees as they are entitled to get, and NEW equity would be subordinate to existing equity IF the existing equity remained.

In unusual instances like American Airlines the Secured Creditors agreed to bargain with the existing equity holders to expedite AAR exiting BK under a merger agreement, BUT in most Chapter 11 BK's the existing equity is cancelled as a condition for the Secured Creditors to agree to the PLAN.

A more appropriate example would be KODAK where all common shares were cancelled.

Google U.S. Bankruptcy Laws to substantiate the above assertions that common equity holders are excluded from the reorganization PLAN 99 % of the time.